Reference no: EM132522530

R.O.I. Planning-Exam Question--optional

Advertisers sometimes use sales tracking to develop R.O.I. for various media options. For example, such an analysis might yield a result that says magazines generate $1.25 in sales for every media dollar invested as opposed to television which yields $1.05. In this example, magazines would be deemed superior on an ‘accountability' or R.O.I. basis. Discuss whether or not you think this R.O.I. approach represents a good way to select media and why. You might favor an R.O. I. approach or a more traditional approach to selecting media or some combination of the two. In your discussion you might take into account such considerations as:

Question a. Should sales be the final standard by which to judge media?

Question b. Is there a problem with using R.O.I scores that are based on historical results?

Question c. Does a simple top-line ‘score' help us understand why a particular campaign achieved a certain sales result-so that we could better understand and predict what approach might succeed in the difficult to predict future?.